Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) has sold royalty interest in long-lived producing assets in the Anadarko and Arkoma basins in a volumetric production payment transaction (VPP) to investors associated with Argonaut Private Equity for $412 million.
The assets include proved reserves of approximately 98 billion cubic feet equivalent and current net production of approximately 60 million equivalent per day. Chesapeake values the transaction at $4.20 per Mcfe. The company has retained rights below currently producing intervals.
The purchase was financed by GS Loan Partners, an affiliate of The Goldman Sachs Group Inc. (NYSE: GS).
The deal closed Dec. 31. Jefferies Randall & Dewey was advisor to Chesapeake.
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